Retail and foreign investors both sold — so how did the index rise?
📌 Post Summary
📌 Post Summary
The KOSPI closed up 0.26% at 6,579.48 on September 3 after a rollercoaster session. It opened up 1.33% near 6,650, then plunged 1.88% intraday to the 6,439 range on the oil and rate shock, before barely reversing higher near the close on buying from “other corporations” tied to share buybacks. It was unusual for the index to rise even as individuals, foreigners, and institutions were all net sellers. By sector, insurance and construction were strong while telecom and textiles/apparel lagged. On the stock front, news that Cho Hyun-ah, former Korean Air vice president, is pursuing a sale of her Jeongseok Corporation stake also drew attention.
Today’s KOSPI session was a genuine rollercoaster. It jumped sharply right at the open, plunged intraday, then staged a dramatic reversal right before the close. Individual, foreign, and institutional investors all sold stocks, yet the index still finished higher. Here’s what was behind that, along with the standout stocks and sectors of the day.
① Closing numbers — 6,650 → 6,439 → 6,579, three swings in one day
The KOSPI opened strong on September 3, up 87.61 points (1.33%) at 6,650.33. But it swung sharply, tumbling 1.88% intraday to 6,439.49 on the shock from surging oil prices and interest rates tied to the renewed US-Iran conflict. Buying then flowed in right before the close, and the index ultimately finished up 16.76 points (0.26%) at 6,579.48. The KOSDAQ, by contrast, closed down 13.77 points (1.71%) at 790.21. It too opened higher, up 1.28% at 814.31, before reversing lower — a sharp contrast with the KOSPI’s path.
② The flow of funds — how the index rose when everyone was selling
On the KOSPI market, individuals sold a net ₩955.1 billion, foreign investors ₩419.3 billion, and institutions ₩215.2 billion — all three major investor groups were net sellers. Yet the index still closed higher because “other corporations” bought a net ₩1.5936 trillion, cushioning the decline. A significant portion of that buying is presumed to reflect listed companies’ share buybacks. Kim Ju-yeon, a researcher at Mirae Asset Securities, said of the session: “Individuals, foreigners, and institutions all sold in tandem today,” adding that “buying from other corporations was the only thing propping up the market.”
③ Winners and losers — chips and biotech soft, batteries and financials strong
Among top-cap stocks, Samsung Electronics (-0.20%), SK Hynix (-1.05%), SK Square (-0.10%), Samsung Electro-Mechanics (-3.71%), and Samsung Biologics (-1.60%) all closed lower, with large-cap chip and biotech names underperforming. LG Energy Solution (+5.18%), Hyundai Motor (+1.46%), KB Financial (+5.20%), and Samsung Life (+3.06%), by contrast, rose — a clear divergence. Battery and financial large-caps did much of the work in defending the index today.
④ Sector performance — insurance and construction strong, telecom and textiles weak
By sector, insurance (+4.44%), construction (+3.45%), electricity/gas (+3.22%), transport equipment/parts (+2.69%), transport/storage (+2.61%), and machinery/equipment (+2.50%) all posted clear gains. On the other hand, textiles/apparel (-1.56%), telecom (-1.38%), medical/precision equipment (-1.13%), IT services (-1.10%), pharmaceuticals (-0.96%), and electrical/electronics (-0.53%) were weak. Notably, insurance — a sector typically seen as a beneficiary of rising rates — posted the strongest gain of the day.
⑤ KOSDAQ left behind — retail bought alone while institutions and foreigners sold
Unlike the KOSPI, the KOSDAQ couldn’t avoid a decline. Individuals were the lone net buyers, at ₩294.9 billion, while institutions and foreign investors sold a net ₩184.5 billion and ₩109.4 billion respectively, dragging the index down. While the KOSPI showed defensive strength anchored by large-caps, the more volatile, growth-stock-heavy KOSDAQ proved more vulnerable in today’s risk-off environment.
⑥ Stock in focus — a new chapter in Hanjin’s “sibling feud”?
On the individual stock front, news related to Hanjin KAL, the holding company of the Hanjin Group, drew attention. Cho Hyun-ah (formerly Cho Seung-yeon), eldest daughter of the late Hanjin Group founder Cho Yang-ho and former Korean Air vice president, is reportedly in talks with multiple prospective buyers to sell her entire stake in Jeongseok Corporation, the group’s founding entity. Jeongseok, an unlisted company that manages and leases group real estate including the Hanjin Building, is wholly owned by the founding family and Hanjin KAL — Cho holds 4.59%, her younger brother and Hanjin KAL Chairman Cho Won-tae holds 3.83%, and Hanjin KAL itself holds 60.49%. Given that Cho previously clashed with her brother over control of the group, a sale of her stake to Cho’s side could be read as a signal of “sibling reconciliation,” drawing market interest. Some reports, however, suggest foreign private equity firms with an interest in management participation are also circling, meaning the impact on the group’s governance structure could vary depending on who ultimately buys the stake.
📌 Good to Know
- An index closing higher doesn’t mean every investor made money. On days like today, when different investor groups trade in opposite directions, it’s important to check the individual performance of your own holdings.
- Net buying from “other corporations” propping up the index can also mean that buying is temporary in nature (e.g., share buybacks), so it’s worth watching whether that support continues.
- With fast sector rotation underway, checking for a diversified portfolio rather than concentrating in one sector may help.
- Stocks with governance or control-related issues can see sharper short-term volatility on news flow, warranting separate risk management.
Today’s KOSPI session was rattled by external factors (oil and rates) but held up thanks to an “internal seawall” of share buybacks. The fact that the index closed higher even as individuals, foreigners, and institutions were all net sellers may offer some short-term relief — but since that buying could prove temporary, it’s worth watching the flow of funds a bit more closely in the next session.
Sources
- Financial News (fnnews.com) — “‘I Thought It Was Falling’ — KOSPI Ends Higher on Buying From Other Corporations [fn Closing Bell]”
- Money Today (mt.co.kr) — “[Spot] KOSPI Closes Up 16.76 Points (0.26%) at 6,579.48”
- Gukje News (gukjenews.com) — “KOSPI Closes Up 0.26% at 6,579.48, KOSDAQ Falls 1.71%”
- Money Today (mt.co.kr) — “Hanjin Family’s Eldest Daughter Pursues Sale of Jeongseok Stake — A Turning Point in the ‘Sibling Feud’”
- Money Today (mt.co.kr) — “[Exclusive] Hanjin Family Pursues Jeongseok Stake Sale — Toward ‘Sibling Reconciliation’?”